Toyota recall highlights supply chain issues, says institute chief

Toyota’s latest car recalls highlight the difficulties and risks faced by global companies with long and complex supply chains, according to David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply.

The manufacturer is recalling some 19,000 Avensis and Lexus models in the UK to carry out modifications to their fuel systems. The move is part of a wider international recall campaign for this problem.

Noble said: “As the company’s procurement teams chase round to trace all the affected products and address quality control, they will also be looking to rapidly replace stocks and, in the worst case scenario, look for new suppliers if they can’t resolve these issues quickly.

“We very rarely seem to hear about shareholders and analysts interrogating companies about how robustly their supply chains are managed, yet this is one of the most important functions and biggest areas of risk a business has. Toyota’s latest recall should at the very least start to prompt some searching questions and ask why quality is still in question.”